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Great Rio Indoor Water Park offers family fun year-round in the Northstar state to locals and out-of-state visitors to the nearby Mall of America. The
Great Rio Indoor Water Park offers family fun year-round in the Northstar state to locals and out-of-state visitors to the nearby Mall of America. The demand for day-passes to the water park for each market segment is independent of the other market segment. The marginal cost of providing service to each visitor is $5 per day. Suppose the daily demand curves for the two market segments are: Locals: QL = 3000 - 200PL or PL = 15 - 0.005QL Out-of-town: QO = 3000 - 100PO or PO = 30 - 0.01QO (The subscript L refers to local price and quantity and the subscript o refers to out-of-state price and quantity.) If Great Rio Indoor Water Park charges one price to locals, what is the profit maximizing price for locals? How many day-passes will be sold per day to locals
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